Business

Cathay Pacific to Cut 590 Jobs in Restructuring Move

Cathay Pacific has announced it will cut nearly 600 jobs as part of the biggest restructuring in 20 years.

The cuts include 190 management jobs and 400 non-management staff working at Cathay Pacific’s head office in Hong Kong.

In March, the Hong Kong’s flagship carrier said it would save 30% in employee costs at its head office after the company posted its first annual loss in eight years.

The cuts are part of a three year program to turn around the losses.

Image source Wikimedia

Cathay Pacific said in a statement that the job cuts would be complete by the end of the year, with most of the affected employees to be informed on May 22, and over the next month.

The changes will be overseen by Cathay Pacific’s new chief executive, Rupert Hogg, who replaced Ivan Chu Kwok-leung earlier this month.

Rupert Hogg cited increasing competition and a challenging business outlook for what he called “tough but necessary decisions for the future of our business and our customers”.

Cathay has been facing tough competition from Chinese and Middle Eastern airlines that have expanded rapidly in the Asia Pacific region.

Earlier this year, Cathay posted a net loss of HK$575 million ($74 million) for 2016. It was only the third time Cathay Pacific posted a full-year loss in its 70 year history.

Clyde K. Valle

Clyde is a business graduate interested in writing about latest news in politics and business. He enjoys writing and is about to publish his first book. He’s a pet lover and likes to spend time with family. When the time allows he likes to go fishing waiting for the muse to come.

Recent Posts

Spain: At Least 158 Killed In The Country’s Worst Flooding Disaster

At least 158 people have died in Spain's worst flooding disaster in generations. On October…

2 days ago

Russia Fines Google $20,000,000,000,000,000,000,000,000,000,000,000, Surpassing Global GDP

Google has been fined two undecillion (a two followed by 36 zeroes) roubles by a…

2 days ago

Financing Your Home Remodel: 7 Tips for Success

Embarking on a home remodel is an exciting journey, promising enhanced comfort, increased property value,…

2 weeks ago

Donald Trump Serves Up McDonald’s Fries While Kamala Harris Celebrates 60th Birthday with Church Choir

The US presidential candidates continued to campaign across key swing states on October 20. Footage…

2 weeks ago

America PAC: Elon Musk Promises to Award $1M Each Day to Swing States Voters

Elon Musk has said he will give away $1 million a day to a registered…

2 weeks ago

Canada Expels 6 Indian Diplomats Amid Khalistan Row

India and Canada have decided to expel their top envoys along with other diplomats as…

3 weeks ago